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Clear Communication: The Secret to Efficient Management

I am a big fan of being approachable as a leader. If employees have questions they need answer, they should feel free to ask you directly. Having an open door for your employees can minimize the risk of them making poor decisions.Click to continue

HECM Protects Non-Borrowing Spouses (Part III)

Fear of crossover hole
Risk (or the chance of loss) is common to any type of mortgage lending but reverse-mortgage lending carries an uncommon risk. Insiders call it crossover risk.

Imagine this: you lend $100,000 to a 76-year-old borrower, secured by a home valued at $200,000; because there are no monthly repayments of principal and interest until the borrower moves, sells, or dies, the loan balance (debt) rises while the home’s equity falls, the opposite of what happens with a traditional forward mortgage loan.Click to continue

An Open Door Policy: The Secret to Effective Leadership

There is one quality in a leader that doesn't tend to get a lot of attention. I have spoken a lot about the importance of integrity, the importance of conviction, the importance of education, and so on. But if there is one quality in a leader that can increase effectiveness in dealing with employees more than any other, it is approachability.Click to continue

The Importance of Consistent Communication With Customers

People are forgetful. Even if they have positive experience, it is quickly forgotten--lost in all of the hustle and bustle of life. Did you respond promptly to an inquiry about a loan? Were you kind and courteous with the prospect? Did you provide them with valuable information? Did they express gratitude for your exemplary service? If you can answer "yes" to all of these questions, then you've got nothing to worry about, right?Click to continue

Consumers in Foreclosure: Kick'em When They're Down!

On July 23, 2014, the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) jointly issued an announcement, entitled “CFPB, FTC and States Announce Sweep Against Foreclosure Relief Scammers” (“Announcement”).1

It seems that the perps (aka “perpetrators”) are out in full force, using deception and false promises to “collect more than $25 million in illegal fees from distressed homeowners.”2Click to continue

HECM Protects Non-Borrowing Spouses (Part II)

Regulatory origin of NBS problem
Interpretation of law is a big deal. The non-borrowing spouses’ (NBS) problem sprang from an interpretation of HECM law which excluded NBS from protection against displacement.

As we saw in part one, Congress wanted HECM “homeowner” shielded from displacement, and it defined “homeowner” to include the “spouse” of the homeowner without difference between a borrowing and a non-borrowing homeowner.Click to continue

HECM Protects Non-Borrowing Spouses (Part I)

Beginning Aug. 4, HECM protects non-borrowing spouses (NBS), and the main reverse mortgage product in the U.S. is stronger for it. If you are a non-borrowing spouse, the one who did not sign the loan papers, and if your status was disclosed to the lender (and certified) at loan origination, you are protected from foreclosure and displacement if your borrowing spouse dies.Click to continue

People Want to Know That You Care

There's a misconception that plagues the world of commerce; and it comes from both businesses and customers. Businesses tend to think that success is merely a matter of providing a better product or services than competitors. Customers often think that all they really care about is getting the best deal. But, is this necessarily true?Click to continue

Beyond Compensation: An Attractive Culture

Appropriately compensating your LOs plays an important strategic role in growing your business. Regardless of how intrinsically motivated your people are too succeed, they have their own lives, dreams, and families in which they are investing. And they expect you to reward them for the results they produce.Click to continue

Compensation: Finding the Sweet Spot

When determining how to compensate your LOs, it can be tricky to set a structure that gets the best results. First, you've got to make sure you're setting a structure that is in accordance with regulations. But, more equally importantly, you want to provide the right incentives for your people.Click to continue